CanAm to Double Production in 2012 With 85 % Sold into Long Term Contracts

CanAm Coal Corp. (TSX VENTURE:COE)(OTCQX:COECF) ("CanAm" or the "Company") is
pleased to provide an update on production and sales contracts for the fiscal
year ended December 31, 2012. 


The Company is estimating coal sales of between 450,000 to 550,000 tons for the
2012 fiscal year with a metallurgical/thermal coal mix of 20/80% respectively.
This represents a 200,000 to 300,000 ton increase over 2011 estimated sales or
the Company is forecasting to nearly double production in 2012. Up to 85% of
this estimated 2012 production has been contracted for with a variety of
customers including the Alabama Coal Cooperative and various industrial users.
Sales contracts are for a minimum term of 3 years and some thermal coal
production has been contracted for through 2017.


Pricing obtained by the Company for its high quality metallurgical and thermal
coals has been extremely favorable and all prices are at higher levels than in
2011. On average, the estimated realized sales price for 2012 will be $100/ton
with average price increases as follows:




--  Metallurgical coal: up 11% 
--  Thermal coal - power customer: up 4% 
--  Thermal coal - industrial customers: up 17%



"We are extremely pleased with our recently completed sales contracts as they
provide us with both downside protection and earnings visibility for 2012 and
beyond," said Tim Bergen, CEO of CanAm. "In addition, most of our contracts
include cost inflation clauses which provide for additional protection in the
event our major production cost components were to escalate in the next couple
of years."


About CanAm Coal Corp.

CanAm is a coal producer and development company focused on growth through the
acquisition, exploration and development of coal resources and resource-related
technologies. CanAm's main activities and assets include its four operating coal
mines in Alabama and the Buick Coal Project which holds significant coal
resources, 188 million indicated and 103 million inferred resources, in
Colorado, USA (see the technical report entitled "Limon Lignite Project, Elbert
County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November 2,
2007). Other coal and related opportunities continue to be evaluated on an
ongoing basis. 


For Further Information:  

Forward-Looking Information and Statements

This press release contains certain forward-looking statements and
forward-looking information (collectively referred to herein as "forward-looking
statements") within the meaning of applicable Canadian securities laws. All
statements other than statements of present or historical fact are
forward-looking statements. Forward-looking statements are often, but not
always, identified by the use of words such as "could", "should", "can",
"anticipate", "estimate", "expect", "believe", "will", "may", "project",
"budget", "plan", "sustain", "continues", "strategy", "forecast", "potential",
"projects", "grow", "take advantage", "well positioned" or similar words
suggesting future outcomes. In particular, this press release contains
forward-looking statements relating to future production at the RAC Mining LLC
("RAC") and Birmingham Coal & Coke ("BCC") mines. This forward looking
information is based on management's estimates considering typical strip mining
operations, equipment requirements and availability and typical permitting
timelines. 


In addition, forward-looking statements regarding the Company are based on
certain key expectations and assumptions of the Company concerning anticipated
financial performance, business prospects, strategies, the sufficiency of
budgeted capital expenditures in carrying out planned activities, the
availability and cost of services, the ability to obtain financing on acceptable
terms, the actual results of exploration projects being equivalent to or better
than estimated results in technical reports or prior exploration results, and
future costs and expenses being based on historical costs and expenses, adjusted
for inflation, all of which are subject to change based on market conditions and
potential timing delays. Although management of the Company consider these
assumptions to be reasonable based on information currently available to them,
these assumptions may prove to be incorrect.


By their very nature, forward-looking statements involve inherent risks and
uncertainties (both general and specific) and risks that forward-looking
statements will not be achieved. Undue reliance should not be placed on
forward-looking statements, as a number of important factors could cause the
actual results to differ materially from the Company's beliefs, plans,
objectives and expectations, including, among other things: general economic and
market factors, including business competition, changes in government
regulations or in tax laws; the early stage development of the Company and its
projects; general political and social uncertainties; commodity prices; the
actual results of current exploration and development or operational activities;
changes in project parameters as plans continue to be refined; accidents and
other risks inherent in the mining industry; lack of insurance; delay or failure
to receive board or regulatory approvals; changes in legislation, including
environmental legislation, affecting the Company; timing and availability of
external financing on acceptable terms; conclusions of economic evaluations; and
lack of qualified, skilled labour or loss of key individuals. These factors
should not be considered exhaustive. Many of these risk factors are beyond the
Company's control and each contributes to the possibility that the
forward-looking statements will not occur or that actual results, performance or
achievements may differ materially from those expressed or implied by such
statements. The impact of any one risk, uncertainty or factor on a particular
forward-looking statement is not determinable with certainty as these risks,
uncertainties and factors are interdependent and management's future course of
action depends upon the Company's assessment of all information available at
that time.


Forward-looking statements in respect of the future production of the RAC and
BCC mines may be considered a financial outlook. These forward-looking
statements were approved by management of the Company on January 12, 2012. The
purpose of this information is to provide an operational update on the company's
activities and strategies and this information may not be appropriate for other
purposes.


The forward-looking statements contained herein are expressly qualified in their
entirety by this cautionary statement. The forward-looking statements included
in this press release are made as of the date of this press release and the
Company does not undertake and is not obligated to publicly update such
forward-looking statements to reflect new information, subsequent events or
otherwise unless so required by applicable securities laws.
Benz Capital (TSXV:BCC)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024